Del Val vs. Del Val (Insurance Law)

 

Del Val vs. Del Val

(Insurance Law)

29 Phil 534 (G.R. No. 9374)

February 16, 1915

 

Petitioners:	Francisco del Val et. al.
Respondents:	Andres del Val

 

J. Moreland:

 

FACTS:

 

The Plaintiffs and defendant are brothers and sisters, the only heirs at law and next of kin of Gregorio Nacianceno del Val, who died in Manila on August 4, 1910, intestate.

 

During the lifetime of the deceased he took out insurance on his life for ₱ 40,000.00 and made it payable to the defendant as the sole beneficiary.

 

Plaintiffs contend that the amount of the insurance policy belonged to the estate of the deceased and not to the defendant.

 

ISSUE:

 

Whether the proceeds belonged exclusively to the designated son and not to the estate of the insured.

 

HELD:

 

Yes. When a life insurance policy is made payable to one of the heirs of the person whose life is insured, the proceeds of the policy or the death of the insured belong exclusively to the beneficiary and not to the estate of the person whose life was insured; and such proceeds are his individual property and not the property of the heirs of the person whose life was insured.

 

Article 1035 of the Civil Code, providing that an heir by force of law surviving with others of the same character to a succession must bring into the hereditary estate the property or securities he may received from the deceased during the life of the same, by way of dowry, gift or for any good consideration, in order to compute it in fixing the legal portions and in account of the division, “is not applicable to the proceeds of an insurance policy made payable to one of the heirs of the insured by name, nor can proceeds of such policy be considered a gift under Article 819 of the Civil Code.

 

The contract of life insurance policy is a special contract, and the destination of the proceeds thereof is determined by special laws which deal exclusively with that subject. The Civil Code has no provisions which relate directly and specifically to life insurance contracts or to the destination of life insurance proceeds. That subject is regulated exclusively by the Code of Commerce, which provides for the terms of the contract, the relations of the parties and the destination of the proceeds of the policy.